Stock Of The Day: Jubilant FoodWorks Eyes Three-Year High Post 30% Rally In Two Months

Shares of Jubilant FoodWorks Ltd., the parent of Domino's Pizza, are testing the three-month resistance level which could be key to taking the stock to its highest level in three years.

This comes amid the food and beverage company's deal with Coca-Cola India Pvt. to buy the portfolio of sparkling beverages and other products from the authorised bottlers.

The stock of Jubilant FoodWorks rallied nearly 30% from its recent low of Rs 560 per share made in early November. The dip in November erased the 30% gains made since the beginning of the year.

Domino's Pizza's parent shares currently test the key resistance at Rs 714 — a level the stock missed twice in the last three months. This resistance is also 2-standard deviation above the 14-day moving average. A close above this barrier could send the stock upwards to the Rs 751 level, the highest in three years.

Any momentum switch from the current level could send the stock to the immediate support level of Rs 700 with the next support near Rs 699. The stock comfortably trades above the 21-day exponential moving average and 14-day simple moving average.

Jubilant FoodWorks shares rose as much as 2.9% on the NSE compared to a 0.79% advance in the benchmark Nifty 50 on Friday.

Shares have risen 27% during the last 12 months. The total traded volume so far in the day stood at 4.4 times its 30-day average. The relative strength index was at 69.

Thirteen out of the 31 analysts tracking the company have a 'buy' rating on the stock, 10 suggest a 'hold' and eight have a 'sell' call, according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 14%.

Domino's parent entered into a memorandum of understanding with Coca-Cola India Pvt. to buy the portfolio of sparkling beverage and other products from the company's authorised bottlers.

The subsidiary Jubilant Bhartia Group, will conduct "marketing activities for the said products" and help "enhance its consumer offerings". Coca-Cola's authorised bottlers will become suppliers of sparkling beverages and other products to Jubilant FoodWorks after the agreement is executed, it added.

This comes days after Coca-Cola announced it will sell 40% of its stake in Hindustan Coca-Cola Holdings Pvt., the parent company of Hindustan Coca-Cola Beverages Pvt.

The group, which already operates successful companies such as Jubilant Pharmova Ltd. (market cap: Rs 18,301 crore), Jubilant Ingrevia Ltd. (Rs 13,535 crore), Jubilant FoodWorks Ltd. (Rs 46,759 crore), and Jubilant Industries Ltd. (Rs 2,469 crore), will gain a foothold in the thriving beverage market.

Jubilant FoodWorks reported a decline in profit in the second quarter of fiscal 2025 due to a hit from discontinued operations, even as it met estimates.